Bomb blast shakes greenback

THE dollar came under fresh pressure today after a bomb exploded outside an American consulate in Pakistan, triggering fears of further terrorist attacks on the US.

Eleven people were killed in the suspected suicide bomb attack, latest reports say. The dollar had already been on the ropes after weak US retail sales figures and another fall on Wall Street. News of the bomb sent it tumbling a quarter of a cent to 94.40 cents against the euro and $1.4725 against sterling.

'When incidents like this happen, we sell dollars since we are reminded of the terror attack on New York,' a dealer said. 'But the move was exaggerated due to thin trade.' Traders were reluctant to enter the market too aggressively ahead of this weekend's Group of Seven meeting in Canada.